MGT120H5 Chapter 2: RECORDING BUSINESS TRANSACTIONS
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MGT120H5 Full Course Notes
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Document Summary
Transaction: is any event that has a financial impact on a business and that can be reliably measured. Each asset, liability, and element of shareholders" equity has its own account, which is used to record all the transactions affecting the related asset, liability, or element of shareholders" equity during an accounting period. Buildings: any office buildings, factories, and other buildings owned by a company are included. Equipment, furniture, and fixtures: include a variety of office, computer, and manufacturing equipment, as well as any furniture and fixtures owned by a company. Chapter 2: includes the capital a company has received from its owners in exchange for. Expenses: decrease shareholders" equity and consist mainly of the costs incurred to purchase the goods and services a company needs to run its business. Record the impact of business transactions on the accounting. Income statement data appear as revenues and expenses under retained earnings: revenues increase r/e, expenses decrease r/e.
